Nikkei up for 8th day, but low volumes may portend imminent correction

TOKYO, May 26 (Reuters) - Japanese stocks edged up in a
choppy session on Tuesday, with the eighth day of gains
underpinned by optimism about the economy's recovery.
The Nikkei 225 ended 0.1 percent higher at 20,437.48
after flitting between positive and negative territory during
the session.
Although the subdued activity raised the risk of
profit-taking, the Nikkei's eight-day gains marked its longest
winning streak since last August.
The broader Topix was flat at 1,659.57, with only
1.914 billion shares changing hands, the lowest level in a
month.
"If the stock market is rising with high volume, it's a sign
that the market will likely rise further, but when the market is
marginally higher on low volume, there is a risk behind the
rise," said Norihiro Fujito, a senior investment strategist at
Mitsubishi UFJ Morgan Stanley Securities.
"Whether it's a political risk in the euro zone, volatility
in the bond market or the timing of a U.S. rate hike, we can't
ignore these risks," he said, adding that there's a possibility
that bullish positions would be unwound.
The JPX-Nikkei Index 400 was also flat at
15,003.85.
(Reporting by Ayai Tomisawa; Editing by Shri Navaratnam)